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1. Suppose that the wage rate is $16 per hour, and the price of the product is $2. Values for output and labor are in units per hour. L 0 0 20 1 35 12 47 3 57 4 65 70 6 a. Find the profit-maximizing quantity of labor. b. Suppose that the price of the product remains at $2 but that the wage rate increases to $21. Find the new profit-maximizing quantity of labor. 2. Based on below diagram: a. What are the conditions to achieve a general equilibrium? b. Determine general equilibrium point for production and exchange c. Why are D and F not general equilibrium point for production and exchange? 14 12 10 M' (0 g) MRSXY - 1 MRTXY - 1 2 2 10 12 1416 X (ON)